Report | Sept. 30, 2014

Army and Marine Corps Program Officials Appropriately Assessed the Affordability of the Joint Light Tactical Vehicle Program (Redacted)

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Objective

We determined whether Joint Light Tactical Vehicle (JLTV) Joint Program Office (JPO) officials appropriately assessed the affordability of the JLTV program.

Findings

Army and Marine Corps officials appropriately assessed the affordability of the JLTV program in accordance with DoD policies and procedures prior to the program entering the Engineering and Manufacturing Development (EMD) phase. Specifically:

  • JLTV JPO officials conducted a tradeoff analysis in 2011 that reduced theJLTV’s average procurement cost from $475,000 to $399,000 per vehicle.
  • Deputy Assistant Secretary of the Army for Cost and Economics, Naval Centerfor Cost Analysis, and JLTV JPO officials used an established cost-estimating method and the actual JLTV costs to develop a joint cost estimate for the JLTV program at the start of the EMD phase.
  • Deputy Chief of Staff of the Army, G-8, Program Analysis and Evaluationand Marine Corps Programs and Resources officials performed an affordability analysis in July 2012 on the JLTV program.

We are not making recommendations in this report. However, in preparation for the program to enter the Production and Deployment phase of the acquisition process, scheduled for July 2015, the Army and Marine Corps officials are responsible for continuing to ensure that the JLTV program remains affordable. Specifically:

  • Army G-8 and Marine Corps Programs and Resources officials are responsible for updating the JLTV affordabilityanalysis to include life-cycle funding projections for the next 30 to 40 years to determine the life-cycle costs and inventory implications of the JLTV program on the Army and Marine Corps operations;
  • JLTV JPO officials are responsible for ensuring JLTV costs do not exceed the estimated JLTV average procurement and annual operation and support costs limits; and
  • JLTV JPO officials are responsible for updating these cost estimates at entry into the Production and Deployment phase.